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1 Congressional Research Service
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May 23, 2019


2018 Farm Bill Primer: Rural Development Programs


Title VI of the enacted 2018 farm bill (Agriculture
Improvement Act of 2018, P.L. 115-334) includes
provisions that address rural and regional development
issues. While other legislation has significant implications
for rural areas and rural residents (e.g., transportation
initiatives, environmental regulation, finance and taxation,
Medicare, Social Security), Congress has used periodic
omnibus farm bills to address emerging rural issues as well
as to reauthorize a wide range of rural programs
administered by the U.S. Department of Agriculture's
(USDA) rural development mission agencies: Rural
Utilities Service, Rural Business-Cooperative Service, and
Rural Housing Service. Although the extent of overlap
between federal agencies and programs targeting rural areas
has been of concern to some rural policy observers, USDA
Rural Development has primary federal statutory
responsibility for rural development and has the largest
number of programs providing assistance to rural areas.

The Rural Development title of the 2018 farm bill (Title VI)
provides assistance for rural business creation and
expansion and for rural infrastructure along with traditional
assistance for housing, electrical generation and
transmission, broadband, water and wastewater, and
economic and institutional capacity in local communities.
In previous farm bills, Congress has also supported
innovative and alternative business development (e.g.,
bioenergy, value-added production, local food production)
and innovative mechanisms to finance it (e.g., the Rural
Microentrepreneur Assistance Program). The 2018 farm bill
amends and reauthorizes a wide variety of existing rural
business programs, rural infrastructure development,
housing and community facilities and authorizes several
new initiatives.

What Is Rural?
The 2002 farm bill (P.L. 107-171, Section 6020) amended
the Consolidated Farm and Rural Development Act of 1972
(the ConAct; 7 U.S.C. § 1926 et seq.) to define rural and
rural area as any area other than a city or town with a
population of more than 50,000 and the urbanized area
contiguous and adjacent to such a city or town. Eligibility
for some programs have statutory population limits much
less than 50,000 (e.g., Water and Waste Water loans and
grants-10,000; Community Facilities-20,000). In
awarding loans and grants, regulations may also prioritize
rural areas with even smaller populations and/or household
income limits. The 2018 farm bill amends this definition of
rural to exclude from population thresholds individuals
incarcerated on a long-term or regional basis. The enacted
bill also amends the definition to exclude the first 1,500
individuals residing in on-base military housing. The
enacted bill further amends the Housing Act of 1949 to


permit any area defined as rural between 1990 and 2020 to
remain so classified until publication of the 2030 decennial
census.

New Rural Development Provisions
The 2018 farm bill generally reauthorizes or amends long-
standing programs under the ConAct and the Rural
Electrification Act of 1936 (7 U.S.C. §901 et seq.). New
programs are also authorized under these statutes.

Rural Access to High-Speed Broadband
* The bill authorizes a new grant program for rural
   broadband deployment in addition to loans and loan
   guarantees. Increases broadband minimum speed to 25
   megabits per second (Mbps) downstream and 3 Mbps
   upstream speed. Establishes buildout requirements and
   makes rural areas with an incorporated city of 20,000 or
   more eligible for direct broadband loans and grants
   (§6201).

* Other broadband provisions provide incentives to bring
   broadband service to hard-to-reach areas by establishing
   a method for calculating service points per road mile as
   a density measure (§6201).

* Prioritizes broadband loans and grants to unserved rural
   areas with no residential broadband service, rural
   communities with fewer than 10,000 permanent
   residents, rural communities experiencing outmigration
   that have developed a strategic community investment
   plan, communities with high percentage of low-income
   families, and applications that provide the maximum
   level of broadband service to the greatest proportion of
   rural households in a proposed service area (§6201).

* Increases annual appropriated funding for broadband
   deployment from $25 million in FY2019 to $350
   million in FY2023 (§6201).

The bill also reauthorizes the Rural Gigabit Network Pilot
Program-and renames it the Innovative Broadband
Advancement Program (§6203)-establishes a Rural
Broadband Integration Working Group (§6214), and creates
a Task Force for Reviewing the Connectivity and
Technology Needs of Precision Agriculture (§ 12516). The
enacted bill also authorizes a new Middle Mile
Infrastructure Program (§6201), with authorized
appropriations of $10 million annually (FY2019-2023), to
construct, improve, or acquire infrastructure connecting
rural Internet service provider networks with broadband
Internet backbone networks (§6202).


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